Tax Glossary
Welcome to the our Tax Glossary. To help you interpret the jargon that you can come across in dealing with your tax, our team of experts have written a brief explanation for hundreds of technical terms. Click on a letter to show entries.
Filing By Internet. Refers to filing tax returns of any type on-line.
Deductions are allowed for tools, special clothing etc necessarily provided by an employee without reimbursement and which the employer does not make available. The allowance you can claim is an agreed amount depending on which industry your occcupation falls within.
Where the duties of a 'seafarer' resident and ordinarily resident in the UK are performed wholly or partly outside the UK, a deduction may be allowed from taxable earnings.
A person resident in the UK is generally chargeable to UK tax on worldwide income. However, there are exceptions and reliefs depending upon:-
The type of income
The residence status; and
The domicile status
of the individual and paying body. You should seek professional advice if you are unsure.
Payments made by an employee to a private scheme separate to a company scheme. They are also commonly known as FSAVCs. The rules regarding maximum contributions are slightly different to those for standard personal pension schemes.
Up to 5th April 2009 these rules applied only to qualifying properties situated within the UK but since 6th April 2009 this has been extended to include qualifying properties in the EEA
To be regarded as a furnished holiday letting the property must be furnished and the letting must meet all three of the following qualifying tests:
Available for holiday letting to the public on a commercial basis for 140 days or more; and
let commercially for 70 days or more; and
let for periods of longer term occupation (more than 31 consecutive days) for not more than 155 days during the year
Losses arising on furnished holiday lettings can be set against your total income and are not restricted to the rental business.
Income tax is due on rents received in respect of furnished residential lettings. A furnished property is one which is capable of normal occupation without the tenant having to provide their own beds, tables, sofas and other furnishings, cooker etc. The provison of nominal furnishings will not meet this requirement.
A wear and tear allowance of 10% of the 'net rent' may be claimed to cover depreciation of furniture, fridges etc supplied with the accommodation.
